As a shopper for insurance for your home, you undoubtedly are worried about the cost. One of the first questions most shoppers ask is what is the average homeowners insurance cost. This is a deceiving question as there are so many variables that go into determining your rates. However, there are a few ways to help estimate how much it may cost you to insure your home.
Of course, the home itself is critical to determining the cost of homeowners insurance. Some of the most common and most important criteria to consider include:
- Replacement value
There are other factors that will be taken into account, and their importance in calculating rates will differ from company to company.
The Contents of Your Home
You surely want to add coverage for the contents of your home. Your clothes, appliances, furniture, entertainment, collections, jewelry and other personal property should also be covered and is part of a standard homeowners insurance policy. This will require a personal inventory list with an estimated value of all items you would like included. Of course, the cost will depend greatly upon the value of your contents. Generally, though, this type of coverage is rather inexpensive.
You can get the most bang for your buck with liability insurance for your home. This is coverage in case someone is injured on your property or if a guest’s property is damaged while on your property. For instance, if a limb from a tree in your yard falls on a guest’s vehicle. You can generally get hundreds of thousands of dollars of protection for a small cost addition to your policy. In most cases, your lender will require a certain minimum level of coverage in this regard.
Other Policies and Options
There are many other options and coverage items you can add, or may be forced to add, to your policy. To begin with, depending upon your location, you may need to purchase flood insurance, wind and hail insurance or earthquake insurance. You can also add insurance for other structures on your property such as a storage shed to a policy. If you have items such as a pool or trampoline, you may have to increase your liability coverage or have a separate liability coverage for those specific items. Of course, homeowners insurance companies also have other items they may offer you for additional coverage items or perils that you may consider.
Rate Quotes Are Your Friend
Estimating potential homeowners insurance cost can be done by adding up all the above, however, that is tedious and there is a better methods. The above items are more useful as ways to understand what makes up your rates and what variables can be used to manipulate cost. To quickly estimate the cost of homeowners insurance, you can get online rate quotes. The quotes are free, non-obligatory and take less than 30 minutes to gather. You simply input your variables and will instantly have multiple quotes at your fingertips. It is a very simply method of determining your average homeowners insurance cost.